Board composition has received a lot of attention in recent years as investors focus on the vital role board directors play. Boards are comprised of people who bring their own unique expertise, knowledge and networks to the table. However, the aim of every effective board is to work as a unit in order to evaluate the performance of the organization and support the CEO.
To achieve that goal, a board must be organized to be efficient and equipped to fulfill its purpose. It is usually achieved by building a robust team that can find the truth and be an important sounding board.
In general, it is recommended that boards comprise members who are first-time members as well as experienced directors to give an equal amount of knowledge and perspectives. The key to achieve this is having a clear framework in place that allows nominating committees and the board in general to determine the skills and qualities that make a perfect director candidate.
A matrix of the characteristics of board members is a common tool that can be used to guide the selection process. However, it is important to remember that just because someone is a keeper of certain characteristics doesn’t mean that they are the perfect person for the job.
In relatively new organizations there is a particular type of blockage may occur when the founders are dominant. They believe they have the best idea and aren’t willing to risk changing. This can lead to “founders’ syndrome” where nominating committees fail to acknowledge the need for fresh talent and a refresh of board composition.